WWE announces its financial results for the third quarter

[Kam 243]

From the Wrestling-Online Newsletter:

 

WWE ANNOUNCES 3Q 2008 FINANCIAL RESULTS

 

- It's an ugly day for WWE as the company announced its financial results for the third quarter ended September 30, 2008. Revenues totaled $108.8 million as compared to $108.1 million in the prior year quarter, while operating income was $7.9 million as compared to $13.4 million in the prior year quarter. Net income was $5.3 million as compared to $8.5 million in the prior year quarter. WWE CEO Linda McMahon announced that there will be a $20 million cost savings in the coming year which will definitely mean some jobs will be slashed. "In addition, we have adjusted the scope of our Media Center project and reduced our planned capital spending by approximately $30 million to a range of $65 million to $75 million. We remain committed to managing our business in a manner that is consistent with maintaining our dividend and achieving our long-term financial objectives," said Linda McMahon. You can read the full press release at http://corporate.wwe.com/documents/Q3PressRelease115pmFINAL.pdf

So there could be a few more releases in the upcoming months...

[Guest HH-Evolution]

Sheesh...I'd sure hate to be somebody in a lower-mid card position on prolonged Injury right about now. Oo;

[Dead Crow 370]

It's wrestling-wide, right now. TNA are also cutting costs now that house show business is dwindling and the Impact game is a financial disaster. I wouldn't be surprised if UFC are hurting a little too.

 

The obvious reasons (decreasing quality of product) apply, but it's not isolated.

[Guest jim vs shark]

Sheesh...I'd sure hate to be somebody in a lower-mid card position on prolonged Injury right about now. Oo;

 

Gregory Helms?

[Guest Suphix]

Gregory Helms?

 

It's a strong possibility...

 

I'm just sayin'.

[Guest HH-Evolution]

I was thinking more Evan Bourne...poor guy gets an ankle tear, winds up out for 4 months.

I can see the E Getting MIIIGHTY tempted to apply the Kill switch there and cut monetary spending on him! >>;;;

[Guest MastersGonads]

If its operational costs they are looking to cut, I would expect it more to be Production Staff (especially those on the road) than Talent...

[Guest Nemesis Enforcer]

There is plenty of talent that won't really be missed if they are released, if thy dp go down the talent route thn I expect there t be mass exits of FCW people who have been under developmental for a long long time but not got anywhere near TV

[Murph 93]

If its operational costs they are looking to cut, I would expect it more to be Production Staff (especially those on the road) than Talent...

 

Yeah, that's what I was thinking. There's much more non-wrestling staff in WWE than there are wrestlers [or Entertainers or whatever] isn't there?

 

And I don't know why, but I can see this leading to WWE releasing Freddie Prinze Jr. from the Writing Staff.

[Guest MastersGonads]

Yeah, that's what I was thinking. There's much more non-wrestling staff in WWE than there are wrestlers [or Entertainers or whatever] isn't there?

 

And I don't know why, but I can see this leading to WWE releasing Freddie Prinze Jr. from the Writing Staff.

 

Yes plenty....Average Raw is around 50 + crew...I think the cull may have started already backstage..

[Guest Jayfunk]

Yes plenty....Average Raw is around 50 + crew...I think the cull may have started already backstage..

 

culling crew is small fry not enough savings. WWE has a large roster which IMO 50% could disappear over night and will not be missed. It is a good chance for the WWE to get rid of dead weight and end this crap brand spilt.

 

Have the ECW show still for the younyer guys but have Smackdown and Raw have one roster and one crew. That could lead to better quality (which would make them more money) and reduce talent bill which would save them money

[Murph 93]

I don't know this, but I'd say the WWE staff are paid pretty well too, cutting 2/3/4 of their contracts might about equal the average wrestlers. But yeah, that is just a guess.

[Guest MastersGonads]

culling crew is small fry not enough savings. WWE has a large roster which IMO 50% could disappear over night and will not be missed. It is a good chance for the WWE to get rid of dead weight and end this crap brand spilt.

 

Trust me it really isnt small fry as you put it. There is 50 + crew, around 50% of those are contracted in on a freelance basis, which over the 4 days most of them are away for, totals a great amount of wages, flights and hotels, catering that the WWE are forking out for, and that could be saved.

 

Many of the wrestlers on the roster, who arent withing the top 2 strands in the WWE ladder get paid very little, in compairson to some of the crew for example.

 

The Brand Split will never ended, due to the fact that the TV deals the 3 shows generate and to a lesser extent the ticket revenue is too great for the WWE to lose.

 

As I said before, if its operational costs it suggests Production over Talent and as I said the Production staff culling has been happening for a number of weeks now...

[Ryan 188]

a Question... are WWE as rich as the average Premiership team?

[Guest Jayfunk]

Trust me it really isnt small fry as you put it. There is 50 + crew, around 50% of those are contracted in on a freelance basis, which over the 4 days most of them are away for, totals a great amount of wages, flights and hotels, catering that the WWE are forking out for, and that could be saved.

 

Many of the wrestlers on the roster, who arent withing the top 2 strands in the WWE ladder get paid very little, in compairson to some of the crew for example.

 

The Brand Split will never ended, due to the fact that the TV deals the 3 shows generate and to a lesser extent the ticket revenue is too great for the WWE to lose.

 

As I said before, if its operational costs it suggests Production over Talent and as I said the Production staff culling has been happening for a number of weeks now...

 

i am not saying have one show, in 2000 they had one roster to smackdown and raw and it work really well. cutting production staff may cut some cost but it will not improve quality and thus will not help them improve there profitability that much. Ratings have fallen across smackdown and raw thus the quality has to improve. I will not be suprised if smackdown in 09 drops below 2.0 and settles between 1.5 and 2.0 cutting roster can increase quality and decrease costs which is better than just reducing costs